The biggest quagmire of this market. You have two choices: 1)...

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    The biggest quagmire of this market.
    You have two choices:
    1) Sit in cash and watch your wealth get destroyed by currency debasement.
    2). Take on tremendous risk and buy overpriced equities and attempt to keep up with inflation.

    What’s an investor supposed to do?
    https://x.com/StealthQE4/status/1851786652420620433

    ...there is actually no quagmire

    ...the two choices don't have to be mutually exclusive

    ...one can do (1) first, earning a decent rate on cash without buying overpriced equities

    ...then do (2) once equities have done with their sharp correction.

    ...I think it is a myth that equities shelters you from currency debasement. Unless they are foreign currency equities, the equities are in the same currency as cash. The only assumed shelter is that equities provide higher returns than cash so it covers inflation, that is the argument. But if that is the case, everyone would have already placed in equities with no one bothered to place cash in bank. Equities have caused many to lose money even as indices make all time highs, because not all stocks go up and many made all time lows even as indices go higher, and buying equities at this present time only increases risks of negative returns that cash would never provide. The amount of stuff you can buy with same nominal amount of equities and equivalent cash is exactly the same, so the inflation argument does not hold water.

    ...it is always about allocation to an asset class that makes sense. Literally. And when an asset class behaves in a manner that does not make sense, then we don't allocate to it, regardless of what that asset class does, and if we miss all the good but irrational returns, then so be it. The cash holders will have the last laugh when the disconnect corrects itself and the good times end.
 
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